We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Annaly (NLY) Stock Rises 3.5% on Q1 Earnings Beat, NII Falls
Read MoreHide Full Article
Annaly Capital Management, Inc. (NLY - Free Report) reported first-quarter earnings available for distribution (EAD) per average share of 81 cents, which surpassed the Zacks Consensus Estimate of 72 cents. The figure declined from $1.11 in the year-ago quarter.
The company gained 3.5% following the release of its first-quarter 2023 results. A challenging operating backdrop amid significant volatility in interest rates and mortgage spreads are major near-term headwinds for NLY.
NLY registered a year-over-year decline in book value per share (BVPS) and margin, while the average yield on interest-earning assets improved.
Inside the Headlines
Net interest income (NII) was $19.47 million in the reported quarter, missing the Zacks Consensus Estimate of $183 million. The figure plunged year over year from $580.9 million.
At the first-quarter end, Annaly had $85.5 billion of total assets, with $77.6 billion invested in the Agency portfolio. At the end of the quarter, unencumbered assets were $5.7 billion.
In the reported quarter, the average yield on interest-earning assets (excluding premium amortization adjustment or PAA) was 3.96%, up from the prior-year quarter’s 2.62%. The average economic costs of interest-bearing liabilities were 2.34%, increasing from 0.89%.
Net interest spread (excluding PAA) of 1.62% in the first quarter fell from 1.73% in the prior-year quarter. Also, the net interest margin (excluding PAA) was 1.76% compared with 2.04% in first-quarter 2022.
Annaly’s BVPS was $20.77 as of Mar 31, 2023, down from $27.08 in the prior-year quarter. At the end of the reported quarter, Annaly’s economic capital ratio was 13.2%, up from 13.1% in the prior-year quarter.
In the first quarter, the weighted average actual constant prepayment rate was 5.5%, sequentially down from 7.5%.
Economic leverage was 6.4X as of Mar 31, 2023, up from 6.3X (sequentially) but flat from the prior-year quarter. Annaly generated an annualized EAD return on average equity (excluding PAA) of 14.82% in the first quarter, up from the prior-year quarter’s 14.01%.
AGNC Investment Corp.’s (AGNC - Free Report) first-quarter 2023 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization costs) of 70 cents per share beat the Zacks Consensus Estimate of 61 cents. The bottom line declined from 72 cents in the prior-year quarter.
AGNC Investment’s adjusted net interest and dollar roll income (excluding catch-up premium amortization) was $493 million, rising from the quarter-ago number of $423 million.
Starwood Property Trust (STWD - Free Report) is scheduled to report quarterly figures on May 4. Over the past month, the Zacks Consensus Estimate for STWD’s quarterly earnings has been unchanged, implying a 35.5% fall from the prior-year reported number.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Annaly (NLY) Stock Rises 3.5% on Q1 Earnings Beat, NII Falls
Annaly Capital Management, Inc. (NLY - Free Report) reported first-quarter earnings available for distribution (EAD) per average share of 81 cents, which surpassed the Zacks Consensus Estimate of 72 cents. The figure declined from $1.11 in the year-ago quarter.
The company gained 3.5% following the release of its first-quarter 2023 results. A challenging operating backdrop amid significant volatility in interest rates and mortgage spreads are major near-term headwinds for NLY.
NLY registered a year-over-year decline in book value per share (BVPS) and margin, while the average yield on interest-earning assets improved.
Inside the Headlines
Net interest income (NII) was $19.47 million in the reported quarter, missing the Zacks Consensus Estimate of $183 million. The figure plunged year over year from $580.9 million.
At the first-quarter end, Annaly had $85.5 billion of total assets, with $77.6 billion invested in the Agency portfolio. At the end of the quarter, unencumbered assets were $5.7 billion.
In the reported quarter, the average yield on interest-earning assets (excluding premium amortization adjustment or PAA) was 3.96%, up from the prior-year quarter’s 2.62%. The average economic costs of interest-bearing liabilities were 2.34%, increasing from 0.89%.
Net interest spread (excluding PAA) of 1.62% in the first quarter fell from 1.73% in the prior-year quarter. Also, the net interest margin (excluding PAA) was 1.76% compared with 2.04% in first-quarter 2022.
Annaly’s BVPS was $20.77 as of Mar 31, 2023, down from $27.08 in the prior-year quarter. At the end of the reported quarter, Annaly’s economic capital ratio was 13.2%, up from 13.1% in the prior-year quarter.
In the first quarter, the weighted average actual constant prepayment rate was 5.5%, sequentially down from 7.5%.
Economic leverage was 6.4X as of Mar 31, 2023, up from 6.3X (sequentially) but flat from the prior-year quarter. Annaly generated an annualized EAD return on average equity (excluding PAA) of 14.82% in the first quarter, up from the prior-year quarter’s 14.01%.
Annaly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Annaly Capital Management Inc Price, Consensus and EPS Surprise
Annaly Capital Management Inc price-consensus-eps-surprise-chart | Annaly Capital Management Inc Quote
Competitive Landscape
AGNC Investment Corp.’s (AGNC - Free Report) first-quarter 2023 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization costs) of 70 cents per share beat the Zacks Consensus Estimate of 61 cents. The bottom line declined from 72 cents in the prior-year quarter.
AGNC Investment’s adjusted net interest and dollar roll income (excluding catch-up premium amortization) was $493 million, rising from the quarter-ago number of $423 million.
Starwood Property Trust (STWD - Free Report) is scheduled to report quarterly figures on May 4. Over the past month, the Zacks Consensus Estimate for STWD’s quarterly earnings has been unchanged, implying a 35.5% fall from the prior-year reported number.